The Market Basket family saga continues.
Eight weeks ago, the local supermarket chain placed popular CEO Arthur “Artie” T. Demoulas on leave, citing oversight concerns and disputed succession plans. The board alleges that Demoulas has been planning a work stoppage to disrupt the business. The board also suspended a number of top-level executives for what they called “disruptive behaviors.”
“There’s an allegation that I was somehow involved in some type of work stoppage because of the board having a disagreement with Mr. Demoulas, which is just frankly not true,” Joe Schmidt, who served as director of operations for Market Basket, told Boston Public Radio on Tuesday.
Schmidt started bagging groceries at the Danvers location when he was 14, and has been a Market Basket employee for nearly 39 years.
After Schmidt’s appearance on Boston Public Radio, a statement issued on behalf of Market Basket’s board of directors said that he was among two executives fired on Monday and effectuated on Tuesday. The statement said Schmidt was terminated “for insubordination, making false and derogatory remarks about the company and people associated with it, and inappropriate communications with colleagues.” The board also fired Tom Gordon, who was Market Basket’s grocery director.
On Boston Public Radio earlier Tuesday, Schmidt said the real dispute is that Demoulas’ three sisters — Frances, Glorianne and Caren — want control of the company.
“They want more money from the company,” Schmidt said. “And apparently the $40 million after taxes that they get in on an annual basis is not enough.”
Paul Quigley, the district supervisor who has been at Market Basket for more than 44 years, was also placed on leave. Quigley said about a month after Demoulas was dismissed, he started asking the board about when he would return and whether there would be a real investigation into whether there was a planned work stoppage.
Quigley and Schmidt told GBH News they never heard Demoulas mention a work stoppage.
The turmoil comes a little over a decade after Demoulas was ousted from the board in 2014 by his cousin, which resulted in a weeks-long work stoppage and boycott before Demoulas was ultimately reinstated under a new ownership arrangement.
Schmidt said the latest allegations against Demoulas provided a mechanism for the board to oust him and avoid the public outrage that occurred in 2014. It also paves the way for a new successor.
“We’ve worked hard with this company for multiple decades building this company. And over some spite, and greed, and pettiness they’ve taken us and kind of pushed us out so that they can implant Michael Kettenbach ... to be the next CEO,” Quigley said.
Kettenbach is the son of Frances Demoulas, and is currently the deli director. Arthur T. Demoulas had previously recommended to the board that his daughter, Madeline, and his son, T.A., would be viable candidates to succeed him. Still, the board rejected the suggestion, and placed Madeline and T.A. on leave.
Quigley and Schmidt say they are concerned about the future of a Market Basket without Arthur T. Demoulas’ leadership.
“He believes in the Market Basket culture. He believes in the associates; he believes in taking care of customers; he believes in the business partners that help support the organization; and ultimately, also believes in supporting the shareholders of the company. And in that order, not shareholders first,” Schmidt said.
In a statement, suspended CEO Arthur T. Demoulas criticized the executive firings announced Tuesday, calling Schmidt “part of the heart and soul of the company” and a person of “integrity and honor.”
Demoulas said he would work to reverse the decision.
